Are Fewer Employers Using Employment Background Checks?

Nick Fishman

The Society for Human Resource Management (SHRM) just published an eye-opening study on employers use of employee background checks.  The big takeaway that SHRM and other industry writers have chosen to highlight is that the use of pre-employment background screening has declined since their last survey was conducted in 2010.  In the 2012 survey, 14% of respondents say that they never perform criminal background checks compared to 7% in 2010.

This finding is particularly puzzling and runs counter to what we are seeing in the marketplace.  In fact, I often tell clients and prospects the key difference in screening between the time we started the company in 1999 and now is that we used to walk into meetings convincing employers that they should have a background screening program.  Now, we simply ask what they are currently doing and how we can make it better.  I haven’t had a conversation with a mid to large sized organization that doesn’t perform an employment background check prior to hire in years.

When I looked at the survey demographics, I noticed that 24% of all respondents worked for organizations with 99 or less employees.  I’m not sure what the demographics were in 2010, but perhaps that might help explain the findings.  In fact, the study notes that only 48% of organizations at this size conduct background checks.

Here are SHRM’s other key findings:

  • 69%  of employers say that they conduct criminal background checks on all job candidates, 18% on select candidates and 14% don’t perform them at all.
  • 62% of employers conduct a background check after a contingent offer, 32% after a job interview and only 4% before an interview.
  • 52%  conduct criminal background checks to reduce negligent hiring concerns while 49% do so to ensure a safe work environment.
  • 96% say that they are influenced not to hire convicted violent felons and 74% say they are influenced by non-violent felony convictions.
  • 58% of organizations allow job candidates to explain the results of their background check before a decision is made and 27% allow them to explain after a decision is made.

Now, rather than make this post into a novel, we’ll be breaking down some of these findings in multiple posts.  In the meantime, feel free to check out the official findings.

 

 

Nick Fishman
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Nick Fishman

Nick Fishman is the co-founder of EmployeeScreenIQ, a leading, global employment background screening provider, and serves as the company’s executive vice president and chief marketing officer. He pioneered the creation of EmployeeScreen University, the #1 educational resource on employment background checks for human resources, security and risk management professionals. A recognized industry expert, Nick is a frequent author, presenter and contributor to the news media. Nick is also a licensed private investigator in the states of Ohio and Texas.
Nick Fishman
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